Jill on Money with Jill Schlesinger Can Trump Cap Credit Card Rates?
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Jan 14, 2026 President Trump's proposal to cap credit card interest rates at 10% raises intriguing legal questions. Jill discusses the necessity of congressional action for such a cap, highlighting the challenges of bipartisan cooperation. Current credit card rates hover around 20%, and a cap could save consumers significant money. She also examines the ripple effects of Federal Reserve rate cuts and the industry’s response to potential changes. Additionally, insights into the politicization of central bank decisions offer a broader view of economic implications.
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High Card Rates Hurt Balances
- Average credit card interest for those carrying balances is around 20% today.
- Capping rates at 10% would meaningfully reduce monthly interest and save hundreds annually for typical balances.
Cap Likely Requires Congress
- The president likely cannot unilaterally cap credit card rates; congressional action appears necessary.
- Bipartisan proposals have existed but stalled, so executive push might revive legislative movement.
Fed Moves Influence Card APRs
- Fed policy affects credit card rates because short-term rates flow through to consumer lending.
- Fed cuts don't translate one-for-one to card APRs, but they do lower borrowing costs somewhat.